Epiroc posts 17% increase in operating profit
Swedish mining equipment manufacturer Epiroc has posted a 17% increase to 2.59 billion crowns (USD 280 million) in its operating profit for the December quarter.
Epiroc saw orders increase by 25% to 11.6 billion Swedish crowns, and recorded an organic growth of 19% in Service and 16% in Tools and Attachments. Mining equipment orders also increased 20% organically.
North America had the highest growth rate for equipment orders.
Revenues hit a record 11.2 billion Swedish crowns, increasing 14% year-on-year.
“Revenues increased and both operating profit and margin reached new records, despite challenges with the COVID-19 pandemic and in the supply chain,” Epiroc chief executive Helena Hedblom said in a statement.
Operating margins increased to 23.2%, from 22.6%.
Constraints in the supply chain have increased, Epiroc noted.
Net working capital has increased 15% to 12.1 billion Swedish crowns compared to last year. Net cash flow has increased to 2.4 billion Swedish crowns.
Epiroc completed two acquisitions in the December quarter, acquiring FVT Research, which converts diesel-powered mining equipment to battery-electric vehicles, and Mobilaris MCE AB, which provides situational awareness for underground operations.
Epiroc has pledged to halve carbon emissions from the use of its equipment by 2030. These targets were validated by the Science Based Targets Initiative, Hedblom said.
Carbon emissions from transport decreased 1%, due to an increased use of sea and road transport instead of air.
